TDA Market Recap, May 15, 2017

For the week ending May 12, 2017, Texas feeder cattle auctions reported mixed prices, with instances of steady to $10 higher and steady to $8 lower. Texas Weekly Direct reported prices $4 to $5 lower, with instances of $1 to $9 lower. Wholesale Beef values were higher at the end of the week, with Choice Grade gaining $6.25 to end at $247.69 per hundredweight (cwt) and Select Grade gaining $2.62 to end at $225.51 per cwt.
For the time period of May 1-7, the USDA NASS Field Office reported that cattle were in mostly good condition across the state. Pasture and range condition was rated at 80 percent good to fair, unchanged from the previous week. Gopher control and feral hog control measures were being implemented in Northeast Texas. Danger of wildfire was reported in the Trans-Pecos due to the high winds and the dry matter in the pastures.
For the time period of April 28- May 4, exporters reported net sales of 10,800 metric tons (MT), which were down 35 percent from the previous week and 41 percent from the prior four-week average. Increases were reported primarily for South Korea, Japan and Mexico. Exports totaled 12,800 MT, and were unchanged from the previous week but down five percent from the prior four-week average. The primary destinations were Japan, South Korea and Mexico.
Cotton prices were higher at the close of last week, with cash prices gaining 4.00 cents to end at 77.25 cents per pound and July futures gaining 5.40 cents to end at 82.18 cents per pound. The USDA NASS Field Office reported that producers in the Southern High Plains were anticipating planting cotton in the coming week. Cotton planting neared completion in the southern districts of the state but was estimated at 16 percent statewide. Net upland sales totaled 160,600 running bales (RB), and were up 5 percent from the previous week but down 20 percent from the prior four-week average. Increases were reported for Turkey, Vietnam and China. Exports totaled 412,800 RB, and were up 16 percent from the previous week and 13 percent from the prior four-week average. The primary destinations were Turkey, Vietnam and Indonesia.
Wheat prices were lower at the close of last week, with cash prices losing a nickel to end at $3.70 per bushel and May futures losing 4 cents to end at $4.29 cents per bushel. The USDA NASS Field Office reported that Winter Wheat condition was mostly fair to good. Areas of the Northern High Plains reported damage to wheat fields due to the previous week’s snow and wet conditions. Producers were still checking for signs of damage. Net sales totaled 273,400 MT, and were reported primarily for China, Mexico and the Philippines. Exports totaled 595,800 MT, and were down four percent from the previous week and nine percent from the prior four-week average. The primary destinations were Indonesia, Nigeria and China.
Corn prices were higher at the close of last week, with cash prices and May futures both gaining a nickel to end at $3.71 per bushel and $3.62 per bushel, respectively. The USDA NASS Field Office reported that corn planting was just getting underway in the Northern High Plains. Corn planting was delayed by wet field conditions. Corn in the Blacklands was being sprayed for pests. Some corn fields in South and South Central Texas entered the silking stage. Net sales totaled 277,700 MT — a marketing-year low — and were down 64 percent from the previous week and 66 percent from the prior four-week average. Increases were reported for Mexico, Japan and Venezuela. Exports totaled 722,900 MT, and were down 41 percent from the previous week and 43 percent from the prior four-week average. The primary destinations were Mexico, Japan and South Korea.
Grain Sorghum cash prices were higher at the close of week, gaining 9 cents to end at $5.47 per cwt. The USDA NASS Field Office reported sorghum planting was delayed by wet field conditions. Net sales totaled 2,000 MT and resulted in increases for China and Japan. Exports totaled 187,300 MT and were up noticeably from the previous week and the prior four-week average. The destinations were China, Mexico and Japan.
Milk prices were higher at the end of last week, with May Class III milk futures gaining 3 cents to end the week at $15.58 per cwt.
This week’s U.S. Drought Monitor for Texas showed worsening drought conditions for the state, with 21.14 percent of Texas still in some stage of drought intensity, up 12.52 percentage points from last week. Additionally, none of the state remains in severe, extreme or exceptional drought. On the national level, drought conditions worsened slightly, with 15.11 percent of the U.S. experiencing abnormal dryness or some degree of drought.

MBF = thousand board feet
All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for Texas direct sales of 650-850 pound medium and large No.1 steers for current delivery. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.”
For additional information, contact TDA at (800) 835-5832 or visit www.TexasAgriculture.gov.